Tammac gets $60M in new financing for manufactured and modular homes
Tammac Holdings plans to ramp up its production of manufactured and modular home loans after obtaining $60 million in debt and equity financing from its new majority owner.
The company recently moved into a new, larger Wilkes-Barre, Pa., headquarters, and is starting to make full use of the financing from Philadelphia-based private equity firm LL Funds, according to Tammac President Jeff Poth.
"Now with the liquidity LL has provided, we're able to offer construction financing, which is the key to us being able to produce a lot of retail volume," Poth said in an interview.
The company is one of the long-time specialists in the manufactured housing market that some mainstream mortgage lenders have gravitated to in order to address a shortage of affordable home inventory. The average price of a manufactured home is less than half that of a site-built structure, according to the Manufactured Housing Institute.
Tammac sells its loan to banks and nonbanks, and does business in 13 select states spanning an area that extends from Maine south to Kentucky and as far west as Ohio. It lends on real property and also finances chattel loans.
LL Funds purchased a majority share of Tammac Holdings late last year. The company's management retains the balance of the shares. Terms of the transaction were not disclosed.
"Tammac is well capitalized, recognized for delivering competitive lending products to a range of borrowers, has a first-class, experienced team and has built deep relationships with key stakeholders. We look forward to working closely with the Tammac team," Jim Morrissey, a partner at LL Funds and the executive chairman of Tammac's Board, said in a press release.